BEIJING, Jul. 28 -- The State Council, or China's cabinet, on Wednesday announced new regulations designed to facilitate the enforcement of the country's new individual income tax law, which features an increased monthly tax exemption threshold.

Premier Wen Jiabao signed a State Council order to approve the creation of the regulations, which are set to take effect on Sept 1, 2011.

The National People's Congress (NPC) Standing Committee, or China's legislative body, adopted an amendment to the individual income tax law during a bimonthly session last month. The amendment raised the monthly tax exemption threshold from 2,000 yuan ($307.7) to 3,500 yuan.

The new law reduces the previous nine-bracket system to a smaller seven-bracket system, eliminating brackets corresponding to tax rates of 15 and 40 percent.

It also reduces the minimum tax rate from 5 percent to 3 percent for people whose monthly incomes are between 3,500 and 4,500 yuan.